You have been considering predictive analytics but don’t know how to apply it in your day-to-day business activities? There are many existing and new ways to use the information available in your company aside from prevision, clustering, tendencies and decision trees. All of these can improve your performance and your business.
Before predictive analytics comes the importance of manipulating big amounts of data thanks toBig Data. The more information you have on hand, the more precise your predictive models will be. With predictive analytics, we go further than the forecast. We predict with a specific time value to get a better understanding of patterns as a result of the correlation factors provided with your system data treatment.
From now on, the organizations that will learn how to make sense in the different flows of information and the signals they send will be the most successful in the future. Where would your business wish to begin? What would you start tracking first?
1. Propensity to Churn
If your company is doing business in a highly competitive market, it may suffer from a high customer turnover. In this case, you could be able to determine a customer’s propensity to churn. With predictive analytics, you will have the ability to figure out how likely your customers are to leave for the competition. Knowing this, align your business decisions and offer new products or services, or even promotions to prevent losing clients.
2. Product Recommendation
Are upsell recommendations randomly suggested to your customers? Predictive analytics’ capacity of analyzing customer purchasing history and online browsing patterns can allow you to build a profile of customer interests. Therefore, your chances of upselling customers are higher as your recommendations will better suit their needs.
3. Predictive Maintenance
Don’t get surprised by machinery degradation or breakage. Use predictive analytics to predict your machinery’s performance when analyzing a continuous stream of equipment data diagnostics.
4. Real-Time Demand / Supply Forecast
If your business activities fluctuate from a season to another or from a region to another, it might be harder to forecast supply requirements and optimize inventory. A better forecast of customer demand depending on the market, season, weather or trends could improve your business performance.
5. Brand Sentiment
Social media have allowed companies to get a better idea of how they are perceived by customers. Use that information to improve customer experience and optimize marketing campaign performance. Predictive analytics help you capture and analyze customer comments on different platforms.
SAP Predictive Analytics solutions are stand-alone and easy to set up. Begin with a local installation and be ready to identify opportunities you had never seen before.